Trading Forex Binaries

There’s a lot of money to be made in the Forex market; it is after all the world’s most heavily traded marketplace. But there is more than one way to trade currencies, and right now, binary options might be the most profitable way to trade currencies on a short term basis. There are a few reasons why this happens, but caution is necessary regardless which path you decide to take.

Lower Costs

In the Forex market, you will not have to pay a fee to conduct a trade as you would in the stock market or while trading futures, but you do have to pay a cost for every trade through the spread. It only comes out to a fraction of a penny per dollar traded, but it does add up over time. This doesn’t exist at all in the binary marketplace. This brings up the inevitable question of how binary brokers make money at all. It works because there is a gap between the amount you earn with a correct prediction and the amount you lose when you’re wrong. You lose more than you gain in the majority of instances. Still, in theory, you would never need to worry about this if you were correct with every single prediction. In other words, if this happened you wouldn’t have any visible costs at all. This happens nowhere else, especially in regards to the Forex market.

Bigger Profits

The Forex market is renowned because of the fact that you can huge profits in a short time. But you can make even more in the binary market if you’re smart. On a single currency trade, you can easily make an 80 percent profit in 15 minutes or so with binary options. And while this is definitely possible in the traditional Forex market, it is certainly not as consistently available as it is with a binary broker.

One of the big perks of trading is the fact that pretty much every major currency pair are available as a 60 second binary options play. This means that you can make a big profit off of a trade that’s only open for one minute. The profit rate is a little lower here–usually around 70 percent–but it’s only 60 seconds of work to get it. Again, it’s physically possible within the Forex market, but it doesn’t happen often. With binaries, you can have access to rates like this around the clock.

Less Risk

Binary options are an all or nothing type of trade, which means that you either earn the full amount you are getting, or you lose the full amount. It’s either one or the other. However, with binaries, you do not risk nearly as much in one trade as you would with Forex trading. Instead of thousands of dollars or more that you could lose here because of leverage, most binary brokers only allow a maximum trade of $1,000. You cannot lose more than this when it’s all you risk, making your maximum loss rate 100 percent. The amount of risk in Forex can be far higher than 100 percent if you max out your leverage in the way that many brokers encourage you to.